East West Bancorp Files Q2 2024 10-Q

TL;DR

EWBC dropped its Q2 10-Q. Financials look solid.

AI Summary

East West Bancorp, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at East West Bancorp's financial health and operational results for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, East West Bancorp is subject to market, credit, and regulatory risks inherent in the banking sector.

Key Numbers

• 2024-06-30 — Period End Date (Quarterly financial reporting)
• 2024-08-08 — Filing Date (Date the report was submitted to the SEC)

Key Players & Entities

• EAST WEST BANCORP INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filing Date
• PASADENA, CA (location) — Business Address

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share EWBC The Nasdaq Global Select

Filing Documents

• ewbc-20240630.htm (10-Q) — 7263KB
• ewbc31110q6302024.htm (EX-31.1) — 12KB
• ewbc31210q6302024.htm (EX-31.2) — 12KB
• ewbc32110q6302024.htm (EX-32.1) — 6KB
• ewbc32210q6302024.htm (EX-32.2) — 6KB
• ewbc-20240630_g1.jpg (GRAPHIC) — 61KB
• ewbc-20240630_g2.jpg (GRAPHIC) — 56KB
• ewbc-20240630_g3.jpg (GRAPHIC) — 63KB
• ewbc-20240630_g4.jpg (GRAPHIC) — 47KB
• ewbc-20240630_g5.jpg (GRAPHIC) — 70KB
• 0001069157-24-000090.txt ( ) — 33028KB
• ewbc-20240630.xsd (EX-101.SCH) — 100KB
• ewbc-20240630_cal.xml (EX-101.CAL) — 162KB
• ewbc-20240630_def.xml (EX-101.DEF) — 733KB
• ewbc-20240630_lab.xml (EX-101.LAB) — 1171KB
• ewbc-20240630_pre.xml (EX-101.PRE) — 1023KB
• ewbc-20240630_htm.xml (XML) — 9072KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 4 Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets (Unaudited) 4 Consolidated Statement of Income (Unaudited) 5 Consolidated Statement of Comprehensive Income (Unaudited) 6 Consolidated Statement of Changes in Stockholders' Equity (Unaudited) 7 Consolidated Statement of Cash Flows (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10 1 — Basis of Presentation 10 2 — Current Accounting Developments and Summary of Significant Accounting Policies 10 3 — Fair Value Measurement and Fair Value of Financial Instruments 11 4 — Securities Purchased under Resale Agreements 21 5 — Securities 22 6 — Derivatives 28 7 — Loans Receivable and Allowance for Credit Losses 35 8 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments , Net 51 9 — Goodwill 52 10 — Short-Term Borrowings and Long-Term Debt 53 1 1 — Commitments and Contingencies 53 1 2 — Stock Compensation Plans 55 1 3 — Stockholders' Equity and Earnings Per Share 56 1 4 — Accumulated Other Comprehensive Income (Loss) 56 1 5 — Business Segments 58 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 103 Item 4.

Controls and Procedures

Controls and Procedures 103

— OTHER INFORMATION

PART II — OTHER INFORMATION 104 Item 1.

Legal Proceedings

Legal Proceedings 104 Item 1A.

Risk Factors

Risk Factors 104 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 105 Item 5. Other Information 105 Item 6. Exhibits 106 GLOSSARY OF ACRONYMS 107 SIGNATURE 108 2

Forward-Looking Statements

Forward-Looking Statements Certain matters discussed in this Quarterly Report on Form 10-Q (this "Form 10-Q") contain "forward-looking statements" that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as "East West" and on a consolidated basis as the "Company," "we," "us," "our" or "EWBC") may make forward-looking statements in other documents that it files with, or furnishes to, the United States ("U.S.") Securities and Exchange Commission ("SEC") and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company's control. Forward-looking statements may relate to various matters, including the Company's financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words such as "anticipates," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "goal," "intends," "likely," "may," "might," "objective," "plans," "potential," "projects," "remains," "should," "target," "trend," "will," "would," or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties. Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to: changes in local, regional and global business, economic and political conditions, and natur

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except shares) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 460,611 $ 444,793 Interest-bearing cash with banks 3,905,080 4,170,191 Cash and cash equivalents 4,365,691 4,614,984 Interest-bearing deposits with banks 24,530 10,498 Securities purchased under resale agreements ("resale agreements") 485,000 785,000 Securities: Available-for-sale ("AFS") debt securities, at fair value (amortized cost of $ 9,644,377 and $ 6,916,491 ) 8,923,528 6,188,337 Held-to-maturity ("HTM") debt securities, at amortized cost (fair value of $ 2,405,227 and $ 2,453,971 ) 2,938,250 2,956,040 Loans held-for-sale 18,909 116 Loans held-for-investment (net of allowance for loan losses of $ 683,794 and $ 668,743 ) 52,084,115 51,542,039 Affordable housing partnership, tax credit and Community Reinvestment Act ("CRA") investments, net 956,428 905,036 Premises and equipment (net of accumulated depreciation of $ 162,030 and $ 157,622 ) 81,675 86,370 Goodwill 465,697 465,697 Operating lease right-of-use assets 81,941 94,024 Other assets 2,042,508 1,964,743 TOTAL $ 72,468,272 $ 69,612,884 LIABILITIES Deposits: Noninterest-bearing $ 14,922,741 $ 15,539,872 Interest-bearing 45,077,044 40,552,566 Total deposits 59,999,785 56,092,438 Bank Term Funding Program ("BTFP") borrowings — 4,500,000 Federal Home Loan Bank ("FHLB") advances 3,500,000 — Long-term debt and finance lease liabilities 36,141 153,011 Operating lease liabilities 89,644 102,353 Accrued expenses and other liabilities 1,627,588 1,814,248 Total liabilities 65,253,158 62,662,050 COMMITMENTS AND CONTINGENCIES (Note 11) STOCKHOLDERS' EQUITY Common stock, $ 0.001 par value, 200,000,000 shares authorized; 169,882,407 and 169,372,230 shares issued 170 169 Additional paid-in capital 2,007,388 1,980,818 Retained earnings 6,873,653 6,465,23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Basis of Presentation East West Bancorp, Inc. is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries ("East West Bank" or the "Bank"). The unaudited interim Consolidated Financial Statements in this Quarterly Report on Form 10-Q (this "Form 10-Q") include the accounts of East West, East West Bank and East West's subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of June 30, 2024, East West also has one wholly-owned subsidiary that is a statutory business trust (the "Trust"). In accordance with Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 810, Consolidation , the Trust is not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements are presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. While the unaudited interim Consolidated Financial Statements reflect all adjustments that, in the opinion of management, are necessary for fair presentation, they primarily serve to update the Company's 2023 Form 10-K, and may not include all the information and notes necessary to constitute a complete set of financial statements. Accordingly, they should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's 2023 Form 10-K. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting periods, and the related disclosures. Although

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View this 10-Q filing on SEC EDGAR